Now Reading: India and Indonesia push for preferential trade deal by 2026
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India and Indonesia push for preferential trade deal by 2026
Indian trade minister Piyush Goyal met his Indonesian counterpart Budi Santoso on the sidelines of the BRICS trade ministers’ meeting in Jaipur on August 7. The two discussed accelerating trade cooperation, enhancing…
The Story in Brief
Indian trade minister Piyush Goyal met his Indonesian counterpart Budi Santoso on the sidelines of the BRICS trade ministers’ meeting in Jaipur on August 7. The two discussed accelerating trade cooperation, enhancing market access, and boosting investment. Indonesia described India as a strategic partner in South Asia.
Indonesia reaffirmed support for concluding the ASEAN-India Trade in Goods Agreement (AITIGA) review by 2026, targeting 80 percent market access liberalisation, up from its current 41.9 percent. Both sides also explored a bilateral preferential trade agreement to complement AITIGA. Bilateral trade in the first half of 2026 stood at $11.89 billion, with Indonesia enjoying a surplus of $6.68 billion.
The Indian Opinion
Familiar diplomatic warmth greeted these talks. But the numbers tell a lopsided story: Indonesia’s trade surplus with India is $6.68 billion in just six months. India’s push for a bilateral preferential deal must address this imbalance, not just chase market access. The real test will come when Indonesia’s tariff offers on Indian goods like buffalo meat and vehicles are put on the table for scrutiny.
Sources (2): economictimes.indiatimes.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
